60

 


First Session, 45th General Assembly

53 Elizabeth II, 2004

BILL 60

AN ACT TO AMEND THE FINANCIAL ADMINISTRATION ACT
NO. 2

Received and Read the First Time...................................................................................................

Second Reading.................................................................................................................................

Committee............................................................................................................................................

Third Reading.....................................................................................................................................

Royal Assent......................................................................................................................................

HONOURABLE LOYOLA SULLIVAN

Minister of Finance and President of Treasury Board

Ordered to be printed by the Honourable House of Assembly

 


EXPLANATORY NOTES

Clause 1 of the Bill would repeal and substitute section 17 of the Financial Administration Act to provide for 2 additional levels of authority to settle debts due to and claims made by the province.

The minister of each department would be able to settle matters where the deficit to the province is $5,000 or less, while deputy ministers would be authorized to settle matters in accordance with Treasury Board guidelines where the deficit is $1,000 or less.

Clause 2 of the Bill would amend section 18 to provide that it applies to all types of debts and taxes that are covered by sections 17 and 19.

Clause 3 of the Bill would provide levels of authority corresponding to those in section 17 to settle accounts in relation to duties, taxes and fines.


A BILL

AN ACT TO AMEND THE FINANCIAL ADMINISTRATION ACT NO. 2

Analysis


        1.   S.17 R&S
Settlement of debt

        2.   S.18 Amdt.
Write-offs

        3.   S.19 Amdt.
Remission of forfeitures, etc.


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

RSNL1990 cF-8
as amended

        1. Section 17 of the Financial Administration Act is repealed and the following substituted:

Settlement of debt

      17. (1) In this section, "debt" and "claim" do not include an amount which may be remitted under section 19.

             (2)  The minister may, subject to the approval of the Lieutenant-Governor in Council and to another Act, negotiate and accept a settlement of a debt or claim due or made by or on behalf of the province in full settlement of that debt or claim.

             (3)  The minister of a department may, upon the recommendation of the board, negotiate and accept a settlement of a debt or claim due or made by or on behalf of the minister in right of the province in full settlement of that debt or claim where the settlement results in a deficit of $5,000 or less.

             (4)  The board may authorize a deputy minister of a department, in accordance with rules that the board may establish, to negotiate and accept settlements of debts or claims due or made by or on behalf of the province in full settlement of those debts or claims where each settlement results in a deficit of $1,000 or less.

 

        2. Subsection 18(1) of the Act is repealed and the following substituted:

Write-offs

      18. (1) Where it appears unlikely that an amount due to the Crown will be paid, but the amount has not been settled under section 17 or remitted under section 19, the board may direct that the deficit be written off.

 

        3. (1) Subsection 19(1.1) of the Act is repealed and the following substituted:

          (1.1)  The minister may, upon the recommendation of the board, remit a duty, tax, toll, fine, forfeiture or pecuniary penalty referred to in subsection (1) or approve a settlement in relation to the duty, tax, toll, fine, forfeiture or pecuniary penalty where the remission is in an amount of $5,000 or less or the settlement results in a deficit of $5,000 or less.

             (2)  Section 19 of the Act is amended by adding immediately after subsection (1.1) the following:

          (1.2)  The board may authorize a deputy minister of a department, in accordance with rules that the board may establish, to remit a duty, tax, toll, fine, forfeiture or pecuniary penalty referred to in subsection (1) and approve a settlement in relation to the duty, tax, toll, fine, forfeiture or pecuniary penalty where the remission is in an amount of $1,000 or less or the settlement results in a deficit of $1,000 or less.

             (3)  Subsections 19(5) and (6) of the Act are repealed.